If a good is inferior. then an increase in income will result in a(n)

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International economics
18. If a good is inferior, then an increase in income will result in a. an increase in the demand for the good. b. a decrease in the demand for the good. c. a movement down and to the right along the demand curve for the good. d. a movement up and to the left along the demand curve for the good. 19. Good X and good Y are substitutes. If the price of good Y increases, then the a. b. c. d. demand for good X will decrease. quantity demanded of good X will decrease. demand for good X will increase. quantity demanded of good X will increase. 20. Todays demand curve for gasoline could shift in response to a change in a. todays price of gasoline. b. the expected future price of gasoline. c. the number of sellers of gasoline. d. All of the above are correct. 21. In a market, to find the total amount supplied at a particular price, we must sum the quantities that individual firms are willing and able to supply at that price. calculate the average of the quantities that individual firms are willing and able to supply at that price. a. b. c. sum the costs that individual firms incur to supply the product at that price. d accout for all lterminants of demand Figure 4-13 22. Refer to Figure 4-13. The shift from S to S is called a(n) a decrease in supply b. decrease in quantity supplied.

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Answer

18) b

For inferior goods increase in income leads to decrease in
demand.

19) c

Demand for other good increases if price increases

20) b

Expected future price can shift the demand curve today.

21) a

Sum of quantities supplied by individual firms give market
quantity supplied.


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